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BANKERS PETROLEUM IMPLEMENTS 2012 OIL HEDGING CONTRACTS

Feb. 25, 2011 (Canada NewsWire Group) -- 4,000 BOPD AT US$80 PER BARREL FLOOR PRICE CALGA...

articleBig Banc Split Corp. Class AFebruary 25, 20114/company/big-banc-split-corp-class-a/news/bankers-petroleum-implements-2012-oil-hedging-contracts
BANKERS PETROLEUM IMPLEMENTS 2012 OIL HEDGING CONTRACTS

About this update from Big Banc Split Corp. Class A

[{"type":"text","content":"\n\n\n Feb. 25, 2011 (Canada NewsWire Group) -- \n\n#ReleaseContent TABLE\n{\n BORDER-COLLAPSE: collapse\n}\nTR.cnwUnderlinedCell TD\n{\n BORDER-BOTTOM: #000000 1px solid\n}\nTR.cnwDoubleUnderlinedCell TD\n{\n BORDER-BOTTOM: #000000 3px double\n}\nTR.cnwBoldUnderlinedCell TD\n{\n BORDER-BOTTOM: #000000 3px solid\n}\nTD.cnwUnderlinedCell\n{\n BORDER-BOTTOM: #000000 1px solid\n}\nTD.cnwDoubleUnderlinedCell\n{\n BORDER-BOTTOM: #000000 3px double\n}\nTD.cnwBoldUnderlinedCell\n{\n BORDER-BOTTOM: #000000 3px solid\n}\n#ReleaseContent TABLE.cnwBorderedTable TD\n{\n BORDER-RIGHT: black 1px solid;\n PADDING-RIGHT: 2px;\n BORDER-TOP: black 1px solid;\n PADDING-LEFT: 2px;\n PADDING-BOTTOM: 2px;\n BORDER-LEFT: black 1px solid;\n PADDING-TOP: 2px;\n BORDER-BOTTOM: black 1px solid;\n BORDER-COLLAPSE: collapse\n}\n#ReleaseContent TABLE TD\n{\n PADDING-RIGHT: 2px;\n PADDING-LEFT: 2px;\n PADDING-BOTTOM: 2px;\n PADDING-TOP: 2px\n}\n\n4,000 BOPD AT US$80 PER BARREL FLOOR PRICE\n\nCALGARY, Feb. 25 /CNW/ - Bankers Petroleum Ltd. (the "Company") announced today the purchase of put contracts representing 4,000 barrels of oil per day at US$80 per barrel of Dated Brent for the period January 1, 2012 to December 31, 2012. This volume represents approximately 20% of the Company's forecasted 2012 average production in Albania. The hedge is strictly financial and does not take into account the Patos-Marinza crude price differential to Dated Brent.\nWith the recent spike in oil prices due to the current geopolitical situation in the Middle East and North Africa, and with our Patos-Marinza oil marketing agreements priced relative to the Brent oil price, the Company elected to implement this relatively inexpensive strategy to start in 2012 as a form of insurance to have downside protection below US$80 per barrel, on a percentage of our production representative of field declines, while continuing full upside participation above the strike price on all 2012 production. If oil prices drop below US$80 per barrel, these hedge contracts and the resulting production cash flow would generate sufficient revenue to fund a significant portion of our capital program in 2012 and service any outstanding debt during that period.\nAdditional oil hedging contracts might be considered in the future as part of Bankers overall risk management strategy.\n\nAbout Bankers...

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